Engaging Supply Chains in Climate Change

41 Pages Posted: 14 Oct 2011 Last revised: 22 Oct 2012

Date Written: October 19, 2012

Abstract

Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated with suppliers being especially willing to share this information with buyers, focusing on attributes of the buyers seeking this information and of the suppliers being asked to provide it. We test our hypotheses using data from the Carbon Disclosure Project’s Supply Chain Program, a collaboration of multinational corporations requesting such information from thousands of suppliers in 49 countries. We find evidence that suppliers are more likely to share this information when requests from buyers are more prevalent, when buyers appear committed to using the information, when suppliers belong to more profitable industries, and when suppliers are located in countries with greenhouse gas regulations. We find evidence that these factors also influence the comprehensiveness of the information suppliers share and their willingness to share the information publicly.

Keywords: Econometric Analysis, Empirical Research, Environmental Operations, Sustainable Operations, OM-Organizational Behavior Interface, Supply Chain Management, Risk Management

JEL Classification: D82, D83, K32, L15, Q2, Q25, Q29

Suggested Citation

Jira, Chonnikarn Fern and Toffel, Michael W., Engaging Supply Chains in Climate Change (October 19, 2012). Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 12-026. Available at SSRN: https://ssrn.com/abstract=1943690 or http://dx.doi.org/10.2139/ssrn.1943690

Chonnikarn Fern Jira

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Michael W. Toffel (Contact Author)

Harvard Business School ( email )

Boston, MA 02163
United States
617.384.8043 (Phone)

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